On Thursday, the US House of Representatives endorsed Donald Trump’s extensive spending proposal, highlighting the US president’s initial significant legislative achievement of his second term. 

Referred to as the “big, beautiful bill” during initial planning meetings, the legislation secures Trump’s fundamental political and economic goals – solidifying tax reductions for individuals and corporations, while eliminating significant climate and social spending initiatives. 

However, hidden within the legislation is a provision that is raising concern among professional gamblers – and it’s far from appealing. Instead of benefiting from those tax reductions, they might encounter taxes on earnings that aren't real, potentially causing a severe impact on their way of life. 

This is due to a late-stage amendment added to the bill in the Senate, which will increase taxes on gamblers by restricting the amount of losses they can deduct. 

Phantom Earnings 

Let's analyze that. Gamblers may subtract losses from their winnings as long as those losses are less than their overall gambling income. However, with the new amendment, just 90% of those losses can be deducted, implying that even gamblers who break even might face a significant tax obligation. 

According to the current regulations, a bettor who neither gains nor loses in a year by earning $100K and losing $100K owes nothing since the losses balance out the winnings. According to the new legislation, they must pay tax on $10K since only $90K of their losses is deductible. 

That implies it will be more challenging to make a profit, adding significant pressure on an already unstable industry. 

“This new amendment to the One Big Beautiful Bill Act would end professional gambling in the US and hurt casual gamblers, too,” poker pro Phil Galfond wrote on X, June 2. “You could pay more in tax than you won. Contact your representative quickly.”

Nevada Rep. Titus Readying a ‘Solution’ 

On Tuesday, U.S. Rep. Dina Titus (D) stated that she was already crafting legislation to relieve the tax burden on gamblers if the bill succeeded. 

“Buried within the BS Republican Budget bill is a provision that harms poker players and those who gamble by limiting loss deductions. I’m working on a legislative fix that fairly treats gaming losses in the tax code,” she wrote on X.

Titus argues that the new policy will negatively impact the gambling sector by potentially driving skilled players away from the regulated US markets, prompting them to turn to offshore sites that lack similar consumer safeguards and do not contribute tax revenue to the US government. 

“Are you tired of winning yet?” a jubilant House speaker Mike Johnson asked after the vote, echoing Trump’s famous 2016 campaign riff: “We’re going to win so much, you may even get tired of winning.”

For gamblers, however, the sensation of "winning" might soon turn into a rather strange experience.